Hermès // CSR Extract 2023

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE THE PLANET: ENVIRONMENT

Purchases of goods Decarbonisation of the Purchases of goods item can only be done in conjunction with suppliers or partners. The objective is therefore to support them so that they can carry out their own carbon footprint assessment and then allocate the appropriate share to each Hermès métier. For more mature suppliers, a questionnaire is sent to them to share their CSR strategy, their carbon footprint or their reduction trajectory, starting with their scopes 1 and 2. Supplier days are also organised with a focus on carbon. Purchases of the raw materials needed for the manufacture of Hermès objects (leather, textiles, metals and precious stones, etc.) represent 58% of the total carbon impact and 60% of scope 3. For textiles, a multi‑company group bringing together players in the cashmere sector, including the Textile division, was created to work on cashmere emissions, identify the items with the highest footprint and reduce them; the study began in 2023 and will be completed in 2024. For leathers, the raw materials department of the Tanneries division, in conjunction with the direct purchasing department, has created Environmental guidelines to improve discussions and the sharing of best practices with its raw hide suppliers. These guidelines, co‑developed with Bureau Veritas, have been introduced to assess and share best practices in an educational way, in particular energy management, in terms of carbon emissions. In 2024, the guidelines will be rolled out to two suppliers of exotic raw hides as well as two calf feedlots/slaughterhouses. At the same time, the division is deepening its knowledge of the environmental impact associated with crocodilian feed through discussions with its suppliers and experts in calculating the carbon footprint for hunted food. Crocodilian feed accounts for around 5% of the Farm division’s greenhouse gas emissions. In 2024, a precise mapping of the chemicals most used in tanneries and/or the most emissive will be carried out. Suppliers will be asked about the impact of their chemicals and their steps towards decarbonisation, which will become a purchasing criterion. Purchases of chemicals represent around 10% of the Tannery division’s emissions. For metals, Hermès Manufacture de Métaux (HMM) is committed to reducing the greenhouse gas emissions associated with its activities by implementing several initiatives aimed at ensuring the sustainability and responsibility of its supply chain. HMM sources gold and palladium exclusively from suppliers with RJC COC certification, thereby ensuring the traceability of the precious materials used. This approach ensures that each material is recycled in accordance with the guidelines of the Responsible Jewellery Council. In 2024, HMM aims to carry out a targeted assessment of the carbon footprint for 20% of its suppliers and to define decarbonisation actions with them. HMM already includes CSR criteria in its supplier audits, designed to assess and encourage best practices in terms of ethics, the environment and governance. Each year, three suppliers are audited, ensuring that HMM’s partners adhere to the standards of responsibility.

For local transport, i.e. deliveries from local warehouses to city centres, electric or biogas vehicles are used whenever possible. For example, the Parisian sites are delivered from the two French logistics centres using electric vehicles (from the Bobigny site), or biogas vehicles (from the Saran site). Since the summer of 2022, 100% of the transport between the logistics platforms and the shipping points for products (airports or ports) has been carried out by our long‑standing partner using bioNGV vehicles , which emit 80% less greenhouse gas than diesel . In the same way, electric transportation has been rolled out for the final kilometres for several cities in Europe such as Madrid, Milan, Rome, Padua, Naples, Kampen and Athens. Optimisation of transportation This last lever is very effective and is systematically activated. For example, for the transportation of shoes, stacking tests for the palboxes were decisive and have made it possible to make better use of the height of each truck and thus reduce the number of trucks, with a saving of 39 tonnes of CO equivalent in 2023. In another example, upstream transportation for shoes is organised on the basis of a “milk round”, in which a standard route is set up, passing at regular intervals between several manufacturers to collect finished products and transport them to our logistics site. This system is used for suppliers in certain regions of Italy and between certain French sites. The average truck load factor for the first quarter of 2023 was 81%, up compared with 2022 (80%). The shuttles departing from the Saran site (in France’s Centre region), have a load factor of 94%, up five points compared with 2022. The collection of plain goods from three suppliers for delivery to the Beyrand decoration site is also carried out on a joint weekly basis. For deliveries in France and Europe, the optimisation of loading and the frequency of departures are also key elements: weekly and bi‑weekly shuttles have been in place for several years and link the logistics warehouse and the various distribution platforms located in France or Spain. (1) (2) 2

2

CHANGE IN THE INTENSITY OF EMISSIONS RELATED TO FREIGHT TRANSPORT OVER THE LAST FIVE YEARS

17

15

13

11

Decrease of 8% between 2022 and 2023

9

7

Decrease of 26% in 5 years

5

2019

2020

2021

2022

2023

BioNGV is obtained from the methanisation of various and sometimes combined organic waste. (french) https://www.mobiogaz.fr/bilan‑co2‑du‑gnv‑ou‑biognv/.

1. 2.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL EXTRACT FROM 2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

189